Both Sides of the Table
JULY 22, 2010
Things like “ participating preferred stock &# in legalese unsurprisingly never actually call out, “hey, this is the participating preferred language.&# We got a3x participating liquidation preference with interest (not participating with a 3x cap, but 3x participating. I turned them down.
Scott Edward Walker
JULY 7, 2011
Redemption Rights What Are Redemption Rights? Redemption Rights What Are Redemption Rights? As a practical matter, however, redemption rights are rarely exercised and, according to Fenwick & West’s recent VC survey , only 20% of the deals in the San Francisco Bay area included such rights.
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Startup Company Lawyer
MARCH 14, 2010
The primary rights in these documents, ranked in order of importance in my opinion are: Non-participating preferred liquidation preference. If new investors get better rights in a future equity financings (such as registration rights, price-based anti-dilution, redemption rights, etc.), Dividend preference.
Up and Running
DECEMBER 30, 2015
Setting too high a valuation. Setting too high a valuation during a funding round can set you up for failure, setting expectations too high for ensuing rounds. It might be difficult to exceed your valuation, making investor relations difficult. – Phil Chen, Systems Watch. Timing is everything for valuation, market, and team.
Scott Edward Walker
SEPTEMBER 14, 2011
Here are the issues I have addressed to date: common mistakes dealing with VC’s valuation liquidation preferences stock options exploding term sheets and no-shop provisions anti-dilution provisions dividends Board control protective provisions drag-along provisions pay-to-play and pull-up provisions conversion rights non-contractual rights redemption (..)
Scott Edward Walker
AUGUST 31, 2011
At what valuation and on what terms? Not to mention pushing back hard on unreasonable terms, such as “exploding” term sheets or certain redemption rights. Which financing sources should they consider? He will also help diligence the investors to make sure you choose the right partner for your startup.
abovethecrowd.com
FEBRUARY 24, 2015
An unprecedented 80 private companies have raised financings at valuations over $1B in the last few years. The size of these companies’ private valuations may be similar to a traditional public company valuation, but that is where the similarities begin and end. This was the recent case with the Box.com IPO.
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